World War II as an equalizer:
Local labor market effects of a demand shock to low skilled workers

Ran Abramitzky, Eirik Berger and Kjell Gunnar Salvanes

14.4.2020

Project Motivation: World war II


Unemployment disappeared:

1940 1941 1942 1943 1944 1945
Men 30,853 15,627 3,537 282 160 7,968
Women 5,949 4,537 1,598 186 87 449
Total 36,802 20,164 5,135 486 247 8,417

Project Motivation: Huge drop in income inequality


Source: Atkinson et al., 2018


This paper: How did demand shocks to local labor markets affect income inequality?

Who benefited from the war?


Source: Atkinson et al., 2018


German building Projects

The following projects have been identified so far:



Building Projects: Coastal artillery

Building Projects: Industry

Building Projects: Airports

Look at local labor markets (20 km radius as example)